The ‘squeezed generation’ is paying to support their parents and kids, despite a tough economic climate and increasing cost of living already having an impact on finances.
According to research from the Co-operative one in seven people are supporting not only themselves, but grown up kids and parents as well. The figures say that two thirds of people in this situation are feeling the strain of financial pressure and over half believe that their lifestyle is being compromised as a result.
A report out today from the Co-operative uncovers a financially squeezed generation of adults who are struggling to provide support to the older and younger generations of their family. The report, entitled ‘Modern Families and Households’ suggests that modern trends, such as having children later in life and the people living longer, are creating a ‘squeezed middle’ that have to shell out more money to support other people.
According to the figures, those that have kids at home over the age of 18 are spending £2,500 a year to simultaneously provide financial support to parents and kids. This equates to almost two months average salary in the UK and is money that could be put towards paying off credit cards and loans.
Robin Taylor, head of banking at the Co-operative said the report highlights the ‘changing nature of modern families’.
“Compared with previous generations, the higher costs of housing, providing care for the elderly and everyday living, have resulted in a squeezed generation, who are having to re-adjust their views of the lifestyle they thought they would have been enjoying at their age” he added.
The biggest support costs were everyday living such as food, but the ‘squeezed middle’ are also paying out for bills, holidays, excursions and large purchases such as white goods.